Caverton Offshore Support Group has swung back to generating positive cash from its core operations, suggesting that conditions are stabilising. Yet the offshore logistics firm remains mired in losses as crushing finance charges wipe out the operational improvements it's made.
The company's audited results for the year ended December 31, 2025, reveal a mixed picture. While cash balances grew and liabilities fell, interest bills exceeding N18 billion obliterated the gains, leaving shareholders with another loss-making year.
The standout bright spot is the return to positive operating cash flow. The group generated N580.1 million in net cash from operations during 2025, a sharp turnaround from the N5.58 billion deficit it posted in 2024.
Working capital improved significantly during the period. Trade receivables dropped by N14.44 billion as collections picked up, while trade payables fell N15.05 billion.
Investing activities yielded N2.72 billion, reversing the N900.7 million drain recorded the previous year. Asset sales brought in N6.03 billion, and the firm unlocked N12.21 billion from short-term investments, though it reinvested N12.92 billion in new securities and spent N2.36 billion on capital projects.
Financing activities added N1.36 billion to the till, a stark contrast to the N14.22 billion outflow in 2024. Fresh borrowings of N35.64 billion offset N28.11 billion in debt repayments, N3.2 billion in interest payments, and N2.97 billion in lease obligations.
Across all activities, cash reserves jumped by N4.66 billion during the year. This marked a complete reversal from 2024, when cash fell by N20.7 billion, moving the group from an overdraft position of N1.39 billion to a net cash position of N3.26 billion.
Revenue collapsed 40 percent, but profit margins widened considerably. Sales fell to N24.1 billion from N40.18 billion, with the aviation division bearing the brunt of the drop.
Aviation revenue plunged to N22.58 billion from N38.5 billion. Flight contract income crashed by more than half to N7.74 billion, training services declined to N4.52 billion from N6.95 billion, and helicopter maintenance fell to N2.73 billion from N3.37 billion.
Helicopter charter revenue held steadier, sliding just 6.8 percent to N7.6 billion.
Marine operations stayed largely unchanged at N1.52 billion versus N1.68 billion previously.
Despite the revenue tumble, gross profit surged to N12.15 billion from N8.42 billion, a 44 percent leap. Cost of sales fell faster than revenue dropped, sliding 62 percent to N11.96 billion.
Crew costs dipped to N5.46 billion from N10.73 billion, while consumables including fuel and spares fell sharply to N1.48 billion from N11.03 billion, reflecting tighter operations.
A N17.4 billion write-off on security deposits wiped out these gains. Administrative expenses nearly trebled to N28.99 billion from N10.49 billion, with the bulk stemming from irrecoverable deposits on leased aircraft the firm had to abandon.
Bank charges soared to N2.82 billion from N707 million, adding further pressure on the bottom line.
